Small business restructuring can be a stressful process. At times it can seem like a struggle to stay afloat. Fortunately, with a healthy amount of determination and expert guidance, your business can become more robust on the other side.
Mastering the SBR framework and comprehending the necessary steps for achieving success equips you with the resources to establish your business for sustained expansion.
In this article, we’ll look at nine top tips to guide you in navigating the storm and setting your business up for sustained long-term success.
1. Don’t put it off
Waiting too long to act when your business is under financial stress is a big mistake. It’s better, to be honest and understand that your business is in financial trouble.
The SBR framework is affordable and has a lower barrier to entry. This makes it easier for struggling businesses to reach out and get their needed support. Getting in touch with someone that can help as early as possible gives your business the best chance of a sustainable recovery.
2. Learn from your mistakes
With opportunity knocking at the door, this is the perfect time to change direction. Learn from your past mistakes, and don’t repeat them. Be bold and try something new. This is your chance to carve out a new position and close any gaps between you and your competition that have widened over time.
3. Maintain a clear view of the situation
When your business is under strain, it’s easy to focus on the immediate problems and lose sight of the bigger picture. Remember to step back and maintain a clear view of the situation. This can give you a stronger indication of what the root causes of your problems are.
4. Don’t cut costs at the expense of quality
If your business is struggling financially, your first port of call during the restructuring process may be to reduce expenditure in any way possible. However, this is the wrong approach. While it is crucial to keep an eye on costs, reducing costs at the expense of quality is a recipe for disaster.
Stay focused on delivering your service to the best of your ability. Streamline your operations where possible, but don’t reduce the quality customers expect, as it will affect business credibility in the future.
5. Maintain a positive mindset
Restructuring your business can be challenging. There are no two ways around it. Remember that the SBR framework is designed to help. With the help of an expert practitioner, there is a light at the end of the tunnel. What matters is perseverance and determination.
Perceive the SBR process as a new opportunity rather than a sign of failure. This positive outlook will give you the confidence to take calculated risks, expand into new areas and take your company in a fresh direction.
6. Plan, plan, plan
When you create your restructuring plan, your external practitioner will help you analyse the successes and failures of your business, along with your primary goals and objectives. This will allow you to draft a thorough plan outlining how to fix severe problems and drive your business to long-term success.
7. Get help if you need it
When times are tough, reaching out and getting the help you need is important. Reach out to those who can support you, and get help from a mentor who can guide you through the process. Restructuring your business can be challenging and disheartening; you don’t need to do it alone.
8. Keep on top of finances
Keeping track of your cash flow is now more critical than ever. It’s crucial to stay organised. Remember that you must pay any further debts you accrue after the SBR plan separately, as the proposed framework won’t cover them. Keep track of bills, wages, and outstanding debts to pay them on time. This will give you peace of mind that you aren’t landing in a worse financial situation.
9. Get great advice
Your external practitioner is an expert in small business restructuring. It’s important to make the most of the services they offer. They aren’t just there to ensure you comply with the agreed terms of the proposal. They also provide advice, consider your business goals, and act with your best interests at heart. Having an external practitioner on your side gives you the peace of mind that your SBR plan is in good hands.
Summing up
Small business restructuring can be daunting, but with determination and the proper guidance, it can set your business up for long-term success. The SBR framework offers an affordable and accessible way for struggling businesses to get needed support. By following these tips, small business owners can survive, thrive through restructuring, and emerge stronger on the other side.